With the market settling back a little yesterday, and Top Equity News’ outlook that the current momentum is too strong for an immediate U-turn, now could be an opportune time to swing-trade stocks.
TEN would suggest looking at strong stocks that are exhibiting signs that they might want to go higher.. Top Equity has identified a tag-team of stocks that meet this criterion.
Cobalt International Energy, Inc (CIE) busted out to a new 52-week yesterday. The bold action lit up our breakout screen as a company with the potential to charge much higher.
Shares are running in open technical field with no resistance ahead. The Independent Oil & Gas company is rising with strong volume characteristics, a sign that big-money institutions are moving in.
If possible, TEN would suggest trying to add CIE around $21.50 and limit losses by putting a stop in around $19.75.
Fiserv, Inc. (FISV) recently bypassed a series of multiple highs. Usually, that’s a strong bullish signal. If shares can trickle back to $64.50, TEN would consider putting some of the Business Services stock in the trading portfolio.
With a little help from a re-rally from the overall market, the NASDAQ 100 member could trace along its upper trend-line with an upside target in the low $70s.
As always, we suggest protecting down side. In Fiserv’s case, Top Equity says $61.94 is about as low as we would be willing to go.
Again, these are short-term ideas that are suited for more aggressive investors. TEN practices a steadfast rule that no loss should exceed 1% of your trading portfolio. For example, if you have $25,000 set aside for high-risk/high-reward situations, then the most you should be prepared to lose is $250 (1% of $25,000) one any one trade.
Using our $25,000 example and CEI‘s suggested entry price and stop loss – a $1.75 difference – Top Equity would take a position of 143 shares ($250 max loss/$1.75 downside to stop).
Top Equity News advises readers to follow winners higher by raising your stops and keeping them in place if shares dip.
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